Avoid Foreclosure Alabama is a group of legal aid organizations working together to help Alabama homeowners keep their homes.


This website is for Alabama homeowners who are struggling financially and are afraid they may lose their home to foreclosure. It includes information about steps you can take pre-foreclosure or if your lender has started or filed foreclosure proceedings.

You do not need to have missed a payment. It is important to act as soon as you know you are having financial difficulty. Many helpful foreclosure avoidance programs and options are available. However, not every option is the right choice for every homeowner, and not every homeowner will be able to stay in the home. Your situation is unique. You need to talk to a housing counselor (a trained professional who can advise you on preventing foreclosure and credit issues) or perhaps a lawyer at no cost to determine your best course of action.

Homeowners worried about their mortgages can be targeted. Do not believe guarantees or immediate results. These scams will charge large fees and you will end up with nothing. “Avoid Foreclosure Alabama” is a program funded by the Alabama Law Foundation and the Alabama Civil Justice Foundation. Legal aid organizations and trained housing counselors will help you at no cost


1What is Avoid Foreclosure Alabama?
“Avoid Foreclosure Alabama” is a group of legal aid organizations working together to help Alabama homeowners keep their homes. The program is for people who make up to 250% of the federal poverty level.
2What step should I take first?
If you are having trouble making your payments contact your mortgage loan servicer right away. A loan servicer is the company you send your payment to. Your loan servicer is usually not the company that owns your loan. Ask your loan servicer about options that can make your payment more affordable. They can discuss a list of loan modifications and other programs the owner of your loan has authorized. The longer you wait the fewer options you will have, so act quickly.
3Who else can help me?

Consider contacting a HUD certified housing counseling agency, a free agency with trained professionals who provide advice on how to avoid foreclosure and on debt issues.

You may want to talk to a lawyer about legal issues you think you may have. Contact the legal aid provider that serves your area.

4Where do I start?

Each homeowner needs to gather information to help decide whether to keep the house. Please have as much of this information as possible when you contact a legal aid office, lawyer or housing counselor.

Below is a list of information you will need to provide:
  • Date you purchased your home
  • Refinance dates (if any)
  • Name of your mortgage servicer (The company you make your payment to)
  • Loan Number
  • Original Loan Amount
  • Interest Rate
  • Monthly Payment
  • Date of your last mortgage payment
  • Loan Term: Your loan may be a fixed rate loan, an adjustable rate loan or an interest only loan (balloon).

      • If your mortgage is a fixed rate loan the term is usually 15, 20 or 30 years.

      • Adjustable rate mortgages have an interest rate that changes sometimes, usually not more than once a year.

      You need to know how long your rate is fixed before it adjusts and how often it adjusts.

      • An interest only loan is a loan that requires you only to pay interest for a certain number of years before you must begin paying principal.

  • Mortgage Type: Your loan is either a conventional loan or government insured. Government insured loans are guaranteed by the federal government and include FHA (Federal Housing Administration), VA (Department of Veterans Affairs) and RHS (Rural Housing Service)/USDA(United States Department of Agriculture) loans.